Chinese authorities want to ban Chinese tech companies that collect large amounts of consumer data from going public in the United States. That reports business newspaper The Wall Street Journal based on insiders.
In addition, China will require all Chinese companies first to request permission for a foreign IPO.
Beijing has for some time been tackling the dominant position of large tech companies with stricter regulations. On Friday, it was also announced that the Chinese authorities want to implement rules on the algorithms used by tech companies.
Those algorithms determine, among other things, which videos and other content are recommended to consumers. The new rules would, among other things, prohibit practices that “encourage addiction or high consumption”.
Recently, the National People’s Congress of China passed a law to protect people’s privacy better online. The rules will come into effect on Nov. 1, state Xinhua news agency reported.
Recently, several companies such as Tencent, Alibaba and the taxi app Didi have been tackled because of competition violations and how they collect data from users.